Dan Pilson Auto Center, Inc. v. DeMarco

509 N.E.2d 159, 156 Ill. App. 3d 617, 108 Ill. Dec. 733, 1987 Ill. App. LEXIS 2610
CourtAppellate Court of Illinois
DecidedJune 10, 1987
Docket4-86-0773
StatusPublished
Cited by10 cases

This text of 509 N.E.2d 159 (Dan Pilson Auto Center, Inc. v. DeMarco) is published on Counsel Stack Legal Research, covering Appellate Court of Illinois primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Dan Pilson Auto Center, Inc. v. DeMarco, 509 N.E.2d 159, 156 Ill. App. 3d 617, 108 Ill. Dec. 733, 1987 Ill. App. LEXIS 2610 (Ill. Ct. App. 1987).

Opinion

JUSTICE McCULLOUGH

delivered the opinion of the court:

The plaintiff, Dan Pilson Auto Center, Inc., brought a replevin action seeking to recover possession of six automobiles from the defendant, William DeMarco, the sheriff of Sangamon County. Following a hearing on the matter, the circuit court of Sangamon County denied Pilson’s complaint for replevin. Pilson appeals the order of the circuit court.

On appeal, Pilson maintains: (1) the decision of the circuit court is contrary to the evidence, thus entitling him to possession of the cars as a matter of law; and (2) the sheriff may not prevail as a “buyer in the ordinary course” as he was on notice of possible defects in title. We reverse and remand.

At the hearing, Dan Pilson, president of Dan Pilson Auto Center located in Mattoon, Illinois, testified that he had entered into an oral agreement to sell six used squad cars to Leo Palmeri. Palmeri was a buyer for Fleet Automotive, a Rockford dealership specializing in fleet transactions. Pilson and Palmeri conducted all negotiations by telephone, which, according to Pilson, was the customary manner of conducting wholesale fleet transactions.

At the time the agreement was made, Pilson was not yet in possession of the cars. Under the terms of the agreement, Pilson was to contact Palmeri upon receipt of the vehicles. Then Palmeri was to come to Mattoon to make an inspection of the cars, and assuming no problems existed, Pilson and Palmeri were to exchange car titles and possession for a cashier’s check.

Pilson contacted Palmeri shortly after the agreement was made to inform him that the squad cars would be coming in later than anticipated. Pilson testified that Palmeri indicated some concern with respect to the delivery date because he had already arranged for sale of the cars and his customer was becoming anxious. The vehicles arrived in early April, and on April 11, 1986, Palmeri was informed the vehicles were ready for his approval. Palmeri indicated that he would come to Mattoon immediately to pick up the vehicles and close the deal.

Palmeri contacted Pilson later that same day and told Pilson that his customer was the Sangamon County sheriff. Palmeri asked Pilson if it would be all right if the sheriff picked up the cars, as the sheriff was anxious to get the vehicles. Palmeri indicated that he would be arriving shortly after the sheriff’s men, but that Pilson should allow the sheriff to take the cars. Pilson agreed to the arrangement.

Captain Pyle of the Sangamon County sheriff’s department arrived at Pilson’s dealership. Pyle inspected the vehicles and then expressed some concern with respect to the mileage and condition of the tires on the squad cars. Pilson stated that he informed Pyle that his transaction with Palmeri was not yet complete and that any price adjustments could be made later by Palmeri. Pyle then signed a “delivery receipt’ ’ and took possession of the cars.

Pilson further testified that at the time he released possession of the cars, he was unaware of the fact that Pyle, on behalf of the sheriff’s department, had already tendered payment to Fleet Auto. Pilson, however, maintained that his transaction was strictly with Palmeri. Palmeri never showed on April 11 and never paid Pilson for the six squad cars. Pilson is still in possession of the certificates of title. *

Captain John Pyle, director of support services for the Sangamon County sheriff’s department, testified that he entered into an agreement with Palmeri to purchase 19 squad cars. Pyle indicated that he had engaged in one previous transaction with Palmeri. It was Pyle’s understanding that Palmeri would obtain squad cars from other dealers and notify the sheriff’s department as the cars became available.

Pyle stated that he received one car from Palmeri in January and two cars in February of 1986. Pyle paid for each vehicle upon receipt of possession. In early April, Pyle was informed of the six cars in Mattoon. Pyle testified that on April 10, 1986, he tendered a cashier’s check in the amount of $25,000 to Fleet Automotive for the vehicles. Pyle was told that the vehicles could be picked up in Mattoon. Pyle stated that he then went to Mattoon, where he received possession of three cars. Pyle returned the next day and picked up the remaining three cars. On cross-examination, Pyle admitted that it was not departmental policy to pay for vehicles prior to receiving title and possession.

Pyle further testified that prior to taking possession of the cars, he signed a delivery receipt. Pyle stated that he did not receive the titles to the cars. It was Pyle’s understanding that he would receive the titles once Palmeri paid for the vehicles. Pyle acknowledged that the cars were given to him as an accommodation to the department so that they might begin painting and altering the vehicles. Pyle additionally admitted that he was aware that Pilson had not been paid for the cars. Pyle understood that Pilson was not going to release the titles until payment was made.

Upon receipt of the vehicles, the sheriff’s department painted the cars and installed radio equipment. Pyle indicated that the cost of the alterations was approximately $2,000 per car. Pyle additionally testified that the sheriff’s department had never received titles for the vehicles.

Initially, there is a dispute with respect to the applicable standard of review. The plaintiff, Pilson, maintains that since there were no disputed facts, the manifest weight standard is inapplicable. Pilson’s contention misconstrues the applicable law. The major issue in this action was the ownership of the vehicles. It is well established that the determination of ownership, transfer of title, and whether a party qualifies as a “buyer in the ordinary course of business” is a question of fact for the trial court to determine. (See American National Bank & Trust Co. v. Mar-K-Z Motors & Leasing Co. (1974), 57 Ill. 2d 29, 309 N.E.2d 567; Country Mutual Insurance Co. v. Aetna Life & Casualty Insurance Co. (1979), 69 Ill. App. 3d 764, 387 N.E.2d 1037.) Since the trial court is in a superior position to assess the credibility of the parties and weigh the evidence in this respect, its decision must stand unless it is contrary to the manifest weight of the evidence.

Pilson initially maintains that he is entitled to judgment for replevin as a matter of law because the sheriff did not receive the certificates of title upon taking possession of the cars. In support of this contention, Pilson cites to numerous authorities from other jurisdictions which indicate that failure to transfer title and possession simultaneously results in a defective transfer.

Under established law in Illinois, it is clear that although the Illinois Vehicle Code requires a transfer of certificate of title to effectuate the sale of a vehicle (Ill. Rev. Stat. 1985, ch. 95½, par. 3—112(a)), it is not necessarily determinative of the passage of ownership. (Country Mutual Insurance Co. v. Aetna Life & Casualty Insurance Co. (1979), 69 Ill. App.

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Bluebook (online)
509 N.E.2d 159, 156 Ill. App. 3d 617, 108 Ill. Dec. 733, 1987 Ill. App. LEXIS 2610, Counsel Stack Legal Research, https://law.counselstack.com/opinion/dan-pilson-auto-center-inc-v-demarco-illappct-1987.